Waste of the Day: VA Pre-Paid $68 Million To Energy Contractors
This story originally was published by Real Clear Wire
By Adam Andrzejewski
Real Clear Wire
The Veterans Health Administration gave energy vendors $68 million in prepayments that didn’t comply with federal law, a new audit found.
The prepayments totaled $10 million in FY 2020 and approximately $58 million in FY 2022, using surplus medical facility funds, according to a December audit from the U.S. Department of Veteran Affairs Office of Inspector General.
These one-time payments are acceptable if they shorten the term of an energy savings performance contract in compliance with Federal Energy Management Program guidance, including that energy cost savings must exceed payments in each contract year,